Deficit could stall Muni makeover

SAN FRANCISCO Agency directors talk of service cuts and raising fares

Published 4:00 am, Wednesday, January 28, 2009

A projected $100 million deficit over the next 18 months could slow implementation of an ambitious plan to overhaul and improve San Francisco's Muni transit service.

The funding shortfall at the Municipal Transportation Agency is driven by expected cuts from the state and City Hall, both hit with their own budget crises.

The agency's governing Board of Directors discussed the budget at a special session Tuesday. Chief Financial Officer Sonali Bose presented an assessment showing that the dire fiscal outlook could lead to an "impact to service levels across all modes."

Whether that means cuts in transit routes or frequency is a matter of debate.

Muni chief Nathaniel Ford said Tuesday that the books can be balanced by reducing administrative costs, extending a partial hiring freeze, dipping into reserves, delaying capital projects, doing a better job of collecting transit fares and making the buses, streetcars and cable cars operate more efficiently.

"We are concerned, but I don't think we're going to have a problem," Ford said.

That doesn't mean riders shouldn't be worried, some officials said.

Director Cameron Beach said that if Muni officials decide, for example, to save money on maintenance costs, "We might be right back in the hole we were in 10 years ago when the system melted down."

Added Director Malcolm Heinicke, "When our CFO tells us we're in the hole tens of millions of dollars, I'm skeptical that we wouldn't have a service impact." He said the agency needs to find creative ways to make more money.

The Municipal Transportation Agency board of directors asked staff to revisit a series of revenue options for Muni that were considered - but never endorsed - by a panel convened by Mayor Gavin Newsom two years ago.

Among those ideas: imposing fees on cruise ships, car rentals and residential development projects; raising the payroll, hotel and parking taxes; and charging a premium fare for express bus service.

Ford said he will provide a detailed analysis outlining the pros and cons of those suggestions and others broached by the mayor's revenue panel.

The idea of raising Muni fares also was brought up by the directors, who took no action Tuesday. The board last year approved a price increase for the monthly Fast Pass starting in July. A regular adult Fast Pass will cost $55, a $10 increase.

Whether the pass should cost more has yet to be determined. However, officials were quick to note that Muni charges less than many other transit operators.